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type in a table rm The following are the balances of Zid pic for the year ended

ID: 2332008 • Letter: T

Question

type in a table

rm The following are the balances of Zid pic for the year ended 31 December 2011 RM Raw materials 28,800 13,450 7.110 Work in Progress NeS Finished goods Purchases Raw materials 75,600 abourCarriage on raw materials 1,700 54,610 17,000 8,000 3.120 5.400 1,500 213,340 4,810 Direct Labour iVCt CkQCnses,ofice salaries Rent Office lighting &heating Depreciation Works machinery Office equipment Sales Factory Fuel and power Factory 2/3 Office 13 Stocks at 31 December 2011 were Raw materials Work in Progress Finished goods 17,540 14,130 19,000 Required: Prepare a manufacturing, trading and profit and loss account for the year ended 31 December 2011

Explanation / Answer

Solution:

Manufacturing, trading and profit and loss Account - Zid Pic For the year ended December 31, 2011 Particulars Amount Beginning Raw material inventory $28,600.00 Add: direct material purchases $75,600.00 Add: Carriage on raw material $1,700.00 Less: Ending raw material inventory $17,540.00 Direct material consumed $88,360.00 Direct labor $54,610.00 Manufacturing overhead: Factory Rent ($6,000*2/3) $4,000.00 Depreciation - Work Machinery $5,400.00 Factory fuel and power $4,610.00 Total manufacturing overhead $14,010.00 Total Manufacturing cost incurred $156,980.00 Add: Beginning WIP $13,450.00 Less: Ending WIP $14,130.00 Cost of goods produced $156,300.00 Sales $213,340.00 Less: Cost of goods sold: Beginning finished goods inventory $7,110.00 Add: Cost of goods produced $156,300.00 Less: Ending finished goods inventory $19,000.00 Cost of goods sold $144,410.00 Gross Profit $68,930.00 Expenses: Office Salaries $17,000.00 Office Rent $2,000.00 Office lighting and heating $3,120.00 Depreciation - Office Equipment $1,500.00 Total Expenses $23,620.00 Net Income $45,310.00